Naphthalene Market - By Source, By Form (Refined Naphthalene, Alkyl Naphthalene, Naphthalene Solid), By Application (Phthalic Anhydride, Naphthalene Sulfonates, Low-Volatility Solvents, Moth Repellent, Pesticides) & Forecast, 2024 – 2032

Naphthalene Market Size

Naphthalene Market was valued at around USD 2.7 billion in 2023 and is anticipated to register a CAGR of over 3.3% between 2024 and 2032. Naphthalene is an aromatic hydrocarbon compound mainly derived from coal tar, a by-product of coke ovens and petroleum refineries. It is a white crystalline solid with a distinctive odor and is widely used in various industries due to its unique properties.

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The global market has witnessed steady growth in recent years, driven by the increasing demand from sectors such as construction, agriculture, and pharmaceuticals. Thus, the naphthalene industry growth is expected to attain a market value of over USD 3.6 billion by 2032.

One of the primary applications of naphthalene is in the construction industry, where it is used as a concrete additive and an insect repellent. Its ability to improve the workability and durability of concrete, as well as its insecticidal properties, has made it an essential component in construction materials. Additionally, naphthalene finds significant usage in the agriculture sector as a soil fumigant and an insecticide for protecting crops from pests and diseases.

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The pharmaceutical industry is another major consumer of naphthalene, leveraging its properties in the production of various drugs, including pain relievers, antiseptics, and antimalarial medications. Moreover, naphthalene is employed in the manufacturing of dyes, pigments, and other chemical intermediates, contributing to the growth of the market.

From a regional perspective, Asia-Pacific dominates the global naphthalene market, driven by the region's thriving construction and agricultural sectors. Countries like China and India are major consumers and producers of naphthalene, fueling the market's expansion. Europe and North America also contribute significantly to the demand for naphthalene, primarily due to their well-established pharmaceutical and chemical industries.

Naphthalene is primarily derived from coal tar and petroleum, both of which are subject to price fluctuations due to varying global economic conditions, geopolitical tensions, and shifts in supply and demand dynamics. For instance, changes in crude oil prices directly affect petroleum-derived naphthalene, while variations in coal production and availability influence coal tar prices. These raw material cost fluctuations can lead to inconsistent pricing for naphthalene products, making it difficult for manufacturers to maintain stable profit margins. Additionally, the volatility of raw material prices can disrupt supply chains, causing delays and increased operational costs. Manufacturers might face challenges in securing consistent supplies at reasonable prices, which can hinder production schedules and affect their ability to meet market demands.

Naphthalene Market Trends

One prominent trend is the increasing demand for high-purity naphthalene derivatives, particularly in advanced applications like pharmaceuticals and specialty chemicals. This shift is spurred by stringent regulatory standards and a growing emphasis on product quality and environmental sustainability. Another trend is the significant growth in the construction sector, particularly in emerging economies, where naphthalene sulfonates are extensively used as concrete admixtures to enhance performance and durability.

Moreover, the textile industry's expansion, especially in Asia-Pacific, is bolstering demand for naphthalene-based dyes and intermediates. The market is also seeing a move towards sustainable practices, with companies investing in research to develop eco-friendly production methods and reduce the environmental impact of naphthalene manufacturing. Technological advancements are playing a crucial role in improving production efficiency and cost-effectiveness, further driving market growth.

Naphthalene Market Analysis

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Based on source, the market is divided into coal tar & petroleum. Coal tar held the dominant market share of USD 1.5 billion in 2023 and is expected to reach over USD 2 billion by 2032. This source continues to hold a significant market share due to its cost-effectiveness and established supply chains. Coal tar-derived naphthalene is extensively used in traditional applications such as the production of phthalic anhydride and concrete admixtures, particularly in regions with well-developed steel industries.

However, petroleum-derived naphthalene is gaining traction, especially in markets focused on high-purity requirements. The production of naphthalene from petroleum sources involves refining processes that can yield higher purity levels, making it suitable for specialized applications in pharmaceuticals, electronics, and advanced chemical manufacturing. This segment is experiencing growth due to the increasing demand for high-quality naphthalene derivatives and advancements in refining technologies

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Based on form, the market is categorized into refined naphthalene, alkyl naphthalene, naphthalene solid & other. Refined naphthalene accounted for over 49% market share in 2023 and is projected to grow through 2032. Refined naphthalene holds a substantial portion of the market due to its widespread use in the production of phthalic anhydride, which is a crucial component in the manufacture of plasticizers, dyes, and resins. Its high purity and consistent quality make it preferable for applications requiring stringent specifications. Alkyl naphthalene, while a smaller segment, is gaining prominence due to its enhanced properties such as increased solubility and stability, making it valuable in niche applications like lubricants, surfactants, and advanced chemical formulations. This form's market share is growing as industries seek specialized compounds for high-performance products.

Based on application, the market is categorized into phthalic anhydride, naphthalene sulfonates, low-volatility solvents, moth repellent, pesticides and other. Phthalic anhydride accounted for major market share in 2023 and is projected to grow through 2032. Phthalic anhydride dominates the market, leveraging naphthalene as a key raw material in the production of plasticizers, resins, and dyes, which are essential in the construction, automotive, and textile industries. This segment's substantial market share reflects its broad industrial utility and high demand. Naphthalene sulfonates represent the second-largest segment, driven by their extensive use as dispersing agents in concrete and admixtures, enhancing the performance and durability of construction materials. The construction boom in emerging economies significantly boosts this segment's market share.

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Asia Pacific dominated the global naphthalene market in 2023. It generated a revenue of USD 1.16 billion in 2023. Within this region, China holds the largest market share due to its massive construction sector, extensive chemical manufacturing base, and significant production of phthalic anhydride. China's robust industrial activities and ongoing infrastructure projects further consolidate its leading position in the market. India follows as a key player, experiencing substantial market growth fueled by its expanding construction industry and increasing demand for naphthalene sulfonates in concrete admixtures. The country's growing automotive and textile sectors also contribute to the rising consumption of naphthalene-based products.

Naphthalene Market Share

The naphthalene industry presents a competitive landscape characterized by a mix of prominent multinational corporations and specialized regional players, indicating a moderately fragmented market. Leading companies such as JFE Chemical Corporation, ExxonMobil Chemical, and Himadri Specialty Chemical Ltd. command significant market share due to their extensive production capacities, advanced technologies, and broad distribution networks. These companies benefit from economies of scale and robust research and development capabilities, enabling them to offer high-purity naphthalene derivatives for diverse industrial applications.

ExxonMobil Chemical and Himadri Specialty Chemical Ltd., in particular, leverage their strong presence in the global chemical industry to maintain competitive advantages through continuous innovation and strategic expansions. Similarly, JFE Chemical Corporation capitalizes on its integrated production processes and strong foothold in Asia.

Other players, such as CDH Fine Chemical and Atom Scientific, focus on niche markets, supplying high-purity and specialty naphthalene products, catering to specific industry needs such as pharmaceuticals and advanced chemicals. Companies like Deza, King Industries, and PCC Group enhance the market's diversity through their specialized product offerings and regional market penetration. China Steel Chemical and Dong-Suh Chemical Ind. Co., Ltd., along with Tulstar Products and Rain Carbon, underscore the regional competitiveness, particularly in Asia, where local demand drives significant market activity. Koppers and Rain Carbon, with their strong presence in North America, further illustrate the geographical spread and competitive nature of the market.

Naphthalene Market Companies

Major players operating in the market include

• Atom Scientific
• CDH Fine Chemical
• China Steel Chemical
• Deza
• Dong-Suh Chemical Ind. Co., Ltd.
• ExxonMobil Chemical
• Himadri Specialty Chemical Ltd.
• JFE Chemical Corporation
• King Industries
• Koppers
• PCC Group
• Rain Carbon
• Tulstar Products

Naphthalene Industry News

• In July 2023, Kazuhito Tsukagoshi, Group Leader of the Thin Film Electronics Group, and a research team from Tokyo Institute of Technology's Chemistry Department successfully identified a single dimer of naphthalene molecules in a nano-gap structure.

The naphthalene market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Billion) (Kilo Tons) from 2018 to 2032, for the following segments

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Market, By Source

• Coal Tar
• Petroleum

Market, By Form

• Refined naphthalene
• Alkyl naphthalene
• Naphthalene solid
• Other

Market, By Application

• Phthalic Anhydride
• Naphthalene Sulfonates
• Low-Volatility Solvents
• Moth Repellent
• Pesticides
• Other Applications (dyes, pigments)

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA